T-Mec Trade Agreement

13. April 2021    

On December 9, 2019, Fox News reported that negotiators from the three countries reached an agreement on implementation, paving the way for a final agreement within 24 hours and ratification by all three parties before the end of the year. Mexico has agreed to impose a minimum wage of $16 per hour for Mexican auto workers by a „neutral“ third party. Mexico, which imports all of its aluminum, also objected to the provisions relating to the U.S. steel and aluminum content of automotive components. [37] During his 2016 election campaign and presidency, Trump sharply criticized NAFTA (it was often called „perhaps the worst trade deal of all time“[105] while hailing the USMCA as „an excellent deal for all of us.“ [106] However, the USMCA is very similar to nafta, has adopted many identical provisions and has made only modest changes, mostly cosmetic,[107] and is expected to have only a limited economic impact. [108] Former U.S. Trade Representative Mickey Kantor, who oversaw the signing of NAFTA during Bill Clinton`s administration, said, „This is really NAFTA of origin.“ [109] On December 10, 2019, the three countries reached a revised USMCA agreement. On January 29, 2020, Deputy Prime Minister and Minister of Intergovernmental Affairs Chrystia Freeland introduced the USMCA C-4 Transposition Act in the House of Commons[93] and passed the first reading without a registered vote. On February 6, the bill passed second reading in the House of Commons by 275 votes to 28, with the Bloc Québécois voting against and all other parties voting in its favour, and it was referred to the Standing Committee on International Trade. [99] [100] [101] On 27 February 2020, the committee voted to send the bill to Parliament for third reading, without amendments. Although no certificate of origin is required for the above product categories for the right to the USMCA/T-MEC/CUSMA, it is still the importer`s responsibility to maintain all valid evidence of origin in the use of free trade agreements. They must ensure that all products receiving preferential tariff treatment are effectively authorised – the applicability of origin can be requested/demanded by the relevant customs authorities during an inspection.

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